Netherlands: “Climate tax” proposals include energy tax measures

Coalition agreement reflects certain climate and environmental tax proposals

Coalition agreement reflects certain climate and environmental tax proposals

A coalition agreement presented by parliamentary parties on 15 December 2021 reflects certain climate and environmental tax proposals.

In brief, the climate and environmental tax proposals include the following:

  • The current CO2 tax on industrial emissions would be tightened “in the margins” and in part accomplished with changes made to the number of dispensation rights and the rate.
  • A minimum CO2 price for industry would be introduced as of 1 January 2023.
  • The energy tax rate structure would be made less “degressive” by increasing the rates in the higher consumption brackets for gas and electricity.
  • The rates regarding surcharges for sustainable energy (that is, the energy tax or surcharge for sustainable energy (Opslag Duurzame Energie—ODE)) in the second and third electricity brackets would be reduced as of 2023 (compared to the rates in the ODE baseline).
  • The energy tax rate for gas in the first bracket would be increased by 5.23 cents/m3 during the period 2023-2028.
  • The energy tax rate for electricity in the first bracket would be increased by 5.23 cents/kWh during the period 2023-2028.
  • The reduced energy tax rate for greenhouse horticulture companies would be repealed, as of 1 January 2025.
  • In 2030, an “MRB plus” (kilometer charge) would be introduced with a flat kilometer rate for all passenger cars and delivery vans.
  • The air passenger tax would be increased as of 2023.
  • As of 1 January 2025, the budget for the environmental investment allowance (milieu-investeringsaftrek—MIA) would be permanently increased by €30 million.

Read a December 2021 report prepared by the KPMG member firm in the Netherlands

 

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